Sailing in A Sea of Plywood

20 May 2022 – In 2011, the price of hardwood plywood delivered to the German border was €539/m3. Eight years later, in 2019, the price is still €539/m3. Between 2011 and 2019, the highest annual average price was 583 €/m3 in 2014. In other words, the 2010s were a decade of stable plywood prices.

That's when plywood buyers can choose who to buy the panels from. If the supplier is uncooperative or has too many quality issues, other producers will be lined up. New suppliers are offering attractive offers, which is keeping price levels stable.

At that time, plywood sales reps were still driving to meet customers face-to-face. They sat down to drink coffee and chat. After a while, the sales rep blushed and proposed a 2 percent price increase. Sometimes they succeed, sometimes they fail.

The company's profit margins are low, but its business is predictable. The years passed steadily. Issues like CARB and EUTR feel like huge projects. Not to mention the arrangements for your sales team’s next gathering.

Of course, it's not just smooth and enjoyable, but the 2010s now look like sailing on a calm blue sea. The sun warms your skin and the boat moves forward slowly.

Before the price increase began in 2021, the average import price of German hardwood plywood fell to 512 euros/m3 in 2020. Since then, the plywood market has seen one surprise after another. Under normal circumstances, today's soaring inflation and deteriorating stock markets would stifle demand. The current deficit in the Russian plywood market has caused an imbalance between supply and demand. The new decade certainly begins on an optimistic note.